The Present Value of an Annuity Stream of $100 Per

question 2

Multiple Choice

The present value of an annuity stream of $100 per year is $614 when valued at a 10% rate.By approximately how much would the value change if these were annuities due?

• A) $10
• B) $61.40
• C) $10 ×Number of years in annuity stream
• D) $6.14 × Number of years in annuity stream

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Definitions:

Behavioural Adaptation

The process of adjusting responses or behaviors in order to cope with new or changing environmental demands.

Environment

The surrounding conditions or context in which a person, animal, or plant lives or operates.

Amplitude

The extent of a vibratory movement measured from the mean position to an extreme, commonly used in physics and signals to describe wave magnitudes.

Brightness

The perception of the intensity of light emitted or reflected by an object, affecting how we see colors and shapes.